Schools consider settling lawsuit

Lake schools could settle with building company for $350,000

TAVARES — School Board members today are due to decide whether to settle a costly legal battle with a building company over construction costs at most of its high schools.

The district for seven years has been in a court fight with Ajax Building Corp., the company that handled building and renovations at Carver Middle School and Tavares, Mount Dora, Eustis, Leesburg and Umatilla high schools. The projects cost taxpayers more than $109 million.

In 2007, Ajax filed suit claiming the district failed to pay the company according to their contract. The district in 2010 then filed five lawsuits against Ajax, saying among other things that the company billed for unapproved work and overcharged the district for subcontractors. The suits contest work done at Tavares, Mount Dora, Eustis, Leesburg and Umatilla high schools.

Steve Johnson, an attorney who represents the district, in 2010 said the district was owed more than $1 million for the projects. Johnson did not return a phone call or email asking for more information about the suit. School district spokesman Chris Patton said the settlement with Ajax would cost the building company $350,000. Patton couldn't say what the payment covered.

The district has already paid Ajax $175,000 to settle claims about Carver Middle School.

Steve Marlowe, a Tampa construction lawyer representing Ajax, wouldn't comment on the case. The company, founded in 1958, has built schools and correctional and health-care facilities among its work. It also built East Ridge High School in south Lake.

School Board member Tod Howard, who said he wasn't familiar with many details about the case, called it a "ongoing mess" for both sides.

"It's been very expensive," he said, "and it needs to go away."

The district has already spent more than $271,000 in legal fees on the case since 2009. In March, for instance, the district paid $30,961 to Leesburg-based McLin Burnsed, the firm that employs Johnson.